Microsoft Oversight Extended to 2009

Court oversight of Microsoft Corp.'s market power, which began in 2002 after
a landmark antitrust settlement, has been extended by 18 months.

A federal judge late Tuesday ruled that the settlement would remain in effect
until November 2009. A group of ten states, led by California and New York,
had requested the oversight be extended until November 2012.

The court's ruling "should not be viewed as a sanction against Microsoft,"
U.S. District Court Judge Colleen Kollar-Kotelly said. She said her decision
was based on delays by Microsoft in filing technical documents related to the
licensing of its software.

"We will continue to comply fully with the consent decree," Brad
Smith, Microsoft's general counsel, said in an e-mail. "We are gratified
that the court recognized our extensive efforts to work cooperatively with the
large number of government agencies involved."

The Bush administration did not join the states' request. The Justice Department
said Microsoft had complied with the settlement and it should be allowed to
expire.

Microsoft's shares fell 9 cents to $32.51 in after-hours trading, after dropping
12 cents to close at $32.60.